Does Voluntary Exchange of Private Property Justify Inequality?

Abstract

AbstractThis chapter discusses the libertarian belief that inequality is legitimate because it is simply the inevitable result of individuals freely exchanging their private property with others, either as gifts or as part of market exchange. According to this view, individuals inherently possess “absolute” rights over their property. The chapter argues that this is wrong because property rights should not be seen as absolute but as contingent on what justice requires. First, the property and wealth that actually exist today are interwoven with a long history of violence, coercion, fraud, theft, domination, and injustice. This means that redistribution is in many cases completely justified, even required. Second, other people’s needs matter, and these needs should sometimes outweigh the individual’s right to have complete control over their property. Third, the rights that individuals have over their property should be seen as very different from, and typically much weaker than, the rights that individuals have over their bodies. It is perfectly legitimate to insist that income and wealth should be frequently redistributed, whereas one’s body parts should not be.